Business Insurance in Alabama

Get the right commercial insurance for your Alabama business

Learn about Alabama's business requirements

Explore resources and expert policy recommendations

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Which policies are recommended for Alabama businesses?

Small businesses in Alabama most often buy these types of insurance.

General liability insurance

This type of business liability insurance is important for all Alabama businesses. A general liability policy covers common third-party risks, and it's required by most commercial leases.

Workers’ compensation insurance

Alabama requires workers' comp for businesses with five or more employees. It also protects sole proprietors from work injury costs that health insurance might deny.

Commercial auto insurance

This policy is required for business-owned vehicles in Alabama. It covers injuries and property damage in an accident, along with vehicle theft and some types of damage.

Business owner’s policy

A BOP bundles commercial property insurance and general liability coverage in one plan. It's often the most cost-effective type of commercial insurance for an Alabama business.

Professional liability insurance

A professional liability insurance policy provides financial protection against lawsuits related to work performance. It's also called errors and omissions insurance (E&O).

Errors and omissions insurance

E&O, sometimes called professional liability insurance, is common with professional services in Alabama. It can cover the cost of lawsuits related to your work performance.

Cyber insurance

This policy covers financial losses from data breaches and cyberattacks. It's recommended for Alabama businesses that handle credit card numbers and other sensitive data.

Commercial umbrella insurance

Umbrella insurance boosts coverage on your general liability insurance, commercial auto insurance, and employer's liability insurance when the underlying policy reaches its limit.

Commercial property insurance

This policy covers the value of a business's physical structure and its contents, such as inventory, equipment, and furniture. Bundle it with general liability coverage in a BOP for savings.

How to get insurance for your Alabama business

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When you are ready to get insurance for your Alabama business, you can complete Insureon's easy online insurance application to get quotes from top-rated carriers.

Which business insurance policies are required in Alabama?

Business insurance requirements are different in every state. These policies are required everywhere in Alabama, from Birmingham to Huntsville.

Alabama state law requires small businesses to carry workers' compensation insurance if they have five or more employees, full-time or part-time. That includes officers of a corporation and members of a limited liability company (LLC).

Workers' comp covers medical bills for Alabama workers who are injured on the job or who develop an occupational disease. It also provides disability benefits while the employee is recovering and unable to work.

All business-owned vehicles in Alabama must be covered by commercial auto insurance. This policy covers the cost of accidents involving work vehicles.

Alabama's minimum requirements for auto liability insurance coverage are:

Trucking companies may need additional coverage to comply with regulations.

Though it's not required, personal vehicles driven for work purposes should be covered by hired and non-owned auto insurance (HNOA), as personal auto policies usually exclude business use. It can be added to commercial general liability insurance or a business owner's policy (BOP).

How much does AL business insurance coverage cost?

Commercial insurance can be affordable for small business owners. Average costs in Alabama are:

General liability: $47 per month Workers' comp: $113 per month Professional liability/E&O: $73 per month

Factors that influence business insurance costs include:

Top professions we insure

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FAQs about Alabama business insurance

Review answers to frequently asked questions about Alabama insurance.

Insureon's licensed agents can help you find policies that fulfill Alabama's requirements and protect against financial loss. Once you've purchased insurance with us, you can download a certificate of insurance by logging into your account.

Yes – that's why cyber insurance is so crucial. Hackers are three times more likely to target small businesses, as they often have fewer resources to combat a threat.

Alabama's data breach laws require businesses to report security breaches to affected residents, and the costs can escalate quickly. Cyber liability insurance lessens the financial impact by paying for notification costs, legal fees, and fines.

Yes, your state may have special requirements for business insurance and bonds for your industry. You may also need a license depending on the work you do.

Contractors often need to carry Alabama general liability insurance or surety bonds to perform certain types of work. Having the right insurance and bonds helps you comply with state licensing requirements.

Real estate agents and brokers and other professionals who offer advice or services sometimes need errors and omissions insurance (E&O) to get licensed in their state.

Note that cities and counties may have their own laws, in addition to state laws.

As with any purchase, shopping around is one of the best ways to find an affordable option. With Insureon, you can compare quotes from top-rated insurance companies by filling out a free online application.

Alabama small businesses can also save money by bundling policies for a discount, and choosing less expensive policy options, such as lower limits or a higher deductible. Learn more about how to find cheap business insurance.